SBI AMC - SBIETFQLTY

About SBI ETF Quality

• The SBI ETF Quality is an exchange-traded fund (ETF) offered by SBI Mutual Fund.
• The ETF scheme was launched on December 10, 2018.
• The Asset Under Management of SBI ETF Quality is around ₹110.38 as of July 31, 2024.
• Raviprakash Sharma is the fund manager for the SBI NIFTY 200 Quality 30 ETF.
• As the ETF units are listed on the NSE and BSE, one can invest by buying units through a broker.
• All the units can be purchased by retail investors directly from the demat account of their choice.

Investment Objective & Benchmark

• The fund's investment objective is to provide returns before expenses that correspond to the performance of stocks in the underlying index, subject to tracking errors.
• It is benchmarked against Nifty 200 TRI.
• The ETF aims to provide exposure to the value factor, with the index consisting of the 30 most momentum and large-cap companies listed on the Nifty Stock Exchange (NSE). It works across market cap, sector and period.
• The SBI ETF Quality aims to track the performance of the top 30 companies within the Nifty 200 selected based on their normalised momentum score in large-cap stocks.
• The ETF invests in large-cap stocks typically considered stable and less volatile.
• This ETF is a passively managed investment, which aims to track the index performance not try to beat the market.
• Reconstitution of SBI ETF Quality happens, semi-annually in June and December.
• Stock eligibility in this fund should have a minimum listing history of one year. The stock should be available for trading in the F&O segment.
• Ideal for investors looking to invest in high-quality companies with a proven track record of financial performance, offering a balanced approach between growth and stability.

Asset Allocation & Portfolio Composition

• The ETF holds 99.85% in equity investments and 0.15% in cash & cash equivalent.
• SBI ETF Quality invests in companies across market capitalisations – 46.61% in the giant cap, 20.73% in large cap, 23.60% in midcap and 9.95% in small-cap stocks.

Sector-wise fund allocation:

• Information Technology: 28.93%
• Fast Moving Consumer Goods: 28.57%
• Consumer Durables: 8.53%
• Capital Goods: 7.26%
• Oil, Gas & Consumable Fuels: 6.76%
• Automobiles and Auto Components: 6.67%
• Healthcare: 2.64%
• Chemicals: 2.45%
• Textile: 2.43%
• Financial Services: 2.39%
• Consumer Services: 2.16%
• Media Entertainments & Publication: 1%

The top 10 companies comprise around 49.71% of the ETF. Here’s a list of top 10 holdings in the ETF:

• Infosys Ltd.: 5.58%
• ITC Ltd.: 5.39%
• Tata Consultancy Services Ltd.: 5.26%
• HCL Technologies Ltd.: 5.22%
• Coal India Ltd.: 5.12%
• Hindustan Unilever Ltd.: 5.12%
• Asian Paints Ltd.: 4.82%
• Nestle India Ltd.: 4.50%
• Colgate Palmolive (India) Ltd.: 4.38%
• Britannia Industries Ltd.: 4.32%

Since its Inception, the ETF has given an annualised return of 17.06%, as of July 31, 2024.

In the last one year, SBI ETF Quality has given a return of 33.38% compared to its benchmarked index which has given a return of 34.39%.